INTRODUCTION TO TOLLING

TOLL PRINCIPLES AND PRACTICES

TOLL 101

INTRODUCTION TO TOLLING

TOLL PRINCIPLES AND PRACTICES

TOLL 101

Today’s ProblemMost funding for highway maintenance and expansion comes from state and federal gas taxes. These funds have run low and are expected to continue to diminish, primarily because the cars have become much more fuel-efficient. Though some states have increased their gas tax, the federal gas tax hasn’t gone up since 1993. Federal taxes go into a fund dedicated to transportation called the Highway Trust Fund. That fund is projected to go into the red soon (if not already). It’s up to Congress to figure out what to do about the federal trust fund - but states have this problem too (most have a state highway trust fund).Tolling is an important part of the solution.

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TOLL 101 Introduction to Tolling1. Toll Organizations, Facilities and Financing2. Roadside Toll Collection3. ETC Customers, Business Rules, Back Office

Operations and Customer Service4. Toll Interoperability

5SECTION

01.

1. TOLLORGANIZATIONS, FACILITIES AND

FINANCING

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1. TOLL ORGANIZATIONS, FACILITIES AND FINANCINGFederal-State PartnershipToll Agency DesignationsToll Agency Management/OversightToll FacilitiesToll Financing

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1. TOLL ORGANIZATIONS, FACILITIES AND FINANCINGFederal-State Partnership▬ Federal

▬ US Department of Transportation (FHWA/FTA)▬ Provides Funding (through legislative formula and grants)▬ Standards, Requirements and Oversight

▬ State ▬ State Departments of Transportation▬ Implement Projects▬ Plan/Budget/Fund Projects (Federal & State Funds)▬ State Toll Agencies (maybe DOT or separate state organization)

▬ Local▬ Metropolitan Planning Organizations (MPO)/Council of Governments (COG)▬ City and County Planning & Public Works▬ Local/Regional Toll Authorities▬ Local/Regional Transit Agencies▬ Regional Transportation/Mobility Authorities

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1. TOLL ORGANIZATIONS, FACILITIES AND FINANCINGToll Agency Organizations ▬ State DOT’s ▬ State Toll Agencies (public turnpikes, agencies, authorities, enterprises, etc.)▬ Agencies of the State (public toll agencies/authorities created by legislative acts)▬ Multi-Jurisdiction Agencies (created & managed by more than one public entity)▬ Independent Regional and/or Local Toll Agencies – (agencies/authorities created

by regional or local jurisdictions)▬ Private Toll Providers Reporting to Public Organizations ▬ Private Owned & Operated Toll Organizations▬ Interoperability Consortiums

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1. TOLL ORGANIZATIONS, FACILITIES AND FINANCINGToll Agency Organizations ▬ State DOT’s

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1. TOLL ORGANIZATIONS, FACILITIES AND FINANCINGToll Agency Organizations ▬ State Toll Agencies (public turnpikes, agencies, authorities, enterprises, etc.)

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1. TOLL ORGANIZATIONS, FACILITIES AND FINANCINGToll Agency Organizations ▬ Agencies of the State (public toll agencies/authorities created by legislative acts)

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1. TOLL ORGANIZATIONS, FACILITIES AND FINANCINGToll Agency Organizations ▬ Multi-Jurisdiction Agencies (created & managed by more than one public entity)

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1. TOLL ORGANIZATIONS, FACILITIES AND FINANCINGToll Agency Organizations ▬ Independent Regional and/or Local Toll Agencies

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1. TOLL ORGANIZATIONS, FACILITIES AND FINANCINGToll Agency Organizations ▬ Private Toll Providers Reporting to Public Organizations

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1. TOLL ORGANIZATIONS, FACILITIES AND FINANCINGToll Agency Organizations ▬ Private Toll Providers Reporting to Public Organizations ▬ Private Owned & Operated Toll Organizations

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▬ State Governors, DOTs, Legislatures, Transportation Commissions, etc.

▬ Independent Boards of Directors (usually a mix of gubernatorial appointees and local elected/appointed officials)

▬ MPO’s/COGs▬ City/County Elected Boards▬ City/County Administrative

Departments▬ Others

1. TOLL ORGANIZATIONS, FACILITIES AND FINANCINGToll Agency Management/Oversight

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Toll Facilities▬ Traditional Tolling – Toll Highways (Motorways), Bridges & Tunnels

▬ High Occupancy Toll (HOT) Lanes – Special Toll Lanes with HOV component

▬ Express Lanes – Special Toll Lanes with no HOV component

1. TOLL ORGANIZATIONS, FACILITIES AND FINANCING

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▬ Traditional Tolling – Toll Highways (Motorways), Bridges & Tunnels▬ Urban Expressways▬ Urban & Rural Turnpikes▬ Bridges & Tunnels

Toll Facilities1. TOLL ORGANIZATIONS, FACILITIES AND FINANCING

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Toll Facilities▬ Traditional Tolling – Toll Highways (Motorways), Bridges & Tunnels

▬ Urban Expressways▬ Urban & Rural Turnpikes▬ Bridges & Tunnels▬ Interstate Highways (existing “grandfathered” locations)

1. TOLL ORGANIZATIONS, FACILITIES AND FINANCING

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Toll Facilities▬ Traditional Tolling – Toll Highways (Motorways), Bridges & Tunnels

▬ Urban Expressways▬ Urban & Rural Turnpikes▬ Bridges & Tunnels▬ Interstate Highways (existing “grandfathered” locations)▬ Interstate Highways (new capacity)

1. TOLL ORGANIZATIONS, FACILITIES AND FINANCING

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Toll Facilities▬ Traditional Tolling – Toll Highways (Motorways), Bridges & Tunnels

▬ Urban Expressways▬ Urban & Rural Turnpikes▬ Bridges & Tunnels▬ Interstate Highways (existing “grandfathered” locations)▬ Interstate Highways (new capacity)▬ Highways (Section 129 of USC 23 – dedicated to specific locations)

1. TOLL ORGANIZATIONS, FACILITIES AND FINANCING

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Toll Facilities▬ High Occupancy Toll (HOT) Lanes – Special Toll Lanes with HOV component

1. TOLL ORGANIZATIONS, FACILITIES AND FINANCING

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Toll Facilities▬ Express Lanes – Special Toll Lanes with no HOV component

1. TOLL ORGANIZATIONS, FACILITIES AND FINANCING

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Toll Financing▬ Traditional Bonding

▬ Revenue Bonds (Generally Tax Free 30-40 Years)▬ Bond Requirements and Covenants

▬ Other Federal & State Bond Programs

▬ Federal & State Grants

▬ State Infrastructure Banks

▬ Public-Private Partnership (PPP/P3)▬ Direct Contracts/Fixed Fee (DBOM-F)▬ Availability Payments (guaranteed model)▬ Concessions (at-risk model)

1. TOLL ORGANIZATIONS, FACILITIES AND FINANCING

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Summary▬ Federal-State Partnership▬ Toll Agency Organizations▬ Toll Agency Management/Oversight▬ Toll Facilities▬ Toll Financing

Questions - Discussion

1. TOLL ORGANIZATIONS, FACILITIES AND FINANCING